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Alfa Group may invest $10bn in oil and gas projects through L1 Energy

Former BP CEO Lord Browne will advise the investment vehicle L1 Energy.

The Russian private investment firm Alfa Group is likely to invest about $10bn in oil and gas projects over the next five years through its investment vehicle L1 Energy that will be advised by former BP CEO Lord Browne.

L1 Energy will be part of Alfa Group’s new international corporate investment vehicle LetterOne Group and will include the Alfa’s telecommunications assets as well as financial assets resulting from the sale of 25 per cent stake in TNK-BP.

Apart from Browne, the newly formed L1 Energy international advisory board will include Andrew Gould, chairman of BG Group and former chairman and CEO of Schlumberger;  Jim Hackett, former executive chairman and former CEO of Anadarko Petroleum Corporation; and Stan Polovets, CEO of the Alfa-Access-Renova Consortium, former shareholder in TNK-BP.

Polovets told Reuters in an interview: “The shareholders plan to invest around $10bn in equity over the next three to five years in order to build a global oil and gas business.”

L1 Energy will be based in London to identify, execute and manage long-term significant investments in exploration & production, oilfield services, infrastructure and other energy projects.

German Khan, a member of the supervisory board of Alfa Group, will become chief executive of L1 Energy. Stan Polovets will serve as lead member of the advisory board.

Khan said: “Alfa Group has an exceptional track record of value creation in the energy sector and we look forward to working with management teams across the industry to replicate our success internationally. We are pleased to have assembled a high-caliber advisory board to be part of our team. They bring a vast breadth of experience and will make an invaluable contribution to developing the business.”